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SolarEdge Technologies (SEDG) Gains As Market Dips: What You Should Know

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SolarEdge Technologies (SEDG - Free Report) closed at $249.58 in the latest trading session, marking a +0.78% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.43%, and the tech-heavy Nasdaq gained 0.03%.

Coming into today, shares of the photovoltaic products maker had lost 11.38% in the past month. In that same time, the Oils-Energy sector lost 15.96%, while the S&P 500 lost 9.7%.

SolarEdge Technologies will be looking to display strength as it nears its next earnings release. On that day, SolarEdge Technologies is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 2.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $826.77 million, up 57.06% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.66 per share and revenue of $3.08 billion, which would represent changes of +17.67% and +56.83%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SolarEdge Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.83% lower. SolarEdge Technologies is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, SolarEdge Technologies is currently trading at a Forward P/E ratio of 43.75. This represents a discount compared to its industry's average Forward P/E of 49.27.

Also, we should mention that SEDG has a PEG ratio of 1.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SEDG's industry had an average PEG ratio of 1.47 as of yesterday's close.

The Solar industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SEDG in the coming trading sessions, be sure to utilize Zacks.com.


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